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Click here to read the flook Stand Alone Risk EXPECTED RETURNS Stocks A and have the following probability distributions of expected future returns: A R Probability 0.1 (5%) (25%) O 0.2 0.3 2 15 0.3 22 39 24 28 50 0.1 a. Calculate the expected rate of return, ro, for Stock B (A= 14,90) Do not round intermediate calculations. Round your answer to two decimal places. 36 b. Calculate the standard deviation of expected returns, a, for Stock A COR = 19.829 Do not found Intermediate calculations. Round your answer to two decimal places 9 c. Now calculate the coefficient of variation for Stock D. Round your answer to two geomal places, d. Is it possible that most investors might regard Stock B as being less like than Stock A? L. Stock is more highly correlated with the market than A, then it might have higher beta than Stock A. and hence be less sky in a portfolio sense. IL. I Stock is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky na portfolio sense. m. Ir stock is more highly correlated with the market than A, then it might have the same beta as Stock A, and bence be just as risky in a portfolio sense. IV. If Stock B is less highly correlated with the market than A, then it might have a lower beta than stock A, and hence be less risky in a portfolio sense. V. If Stock is less highly correlated with the market than A, then it might have higher beta than Stock A, and hence be more risky in a portfolio sense. Select Grade it Now Save & Continue Continue without saving

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